Leases

12 Months Ended

Dec. 31, 2023

16.

LEASES

The Group’s operating leases mainly related to land, offices facilities, IDC facilities and vehicles. For leases with terms greater than

months, the Group records the related asset and obligation at the present value of lease payments over the term. Certain leases include rental escalation clauses, renewal options and/or termination options that are factored into the Group’s determination of lease payments when appropriate. As of December 31, 2023, finance leases were insignificant.

As of December 31, 2022 and 2023, the Group’s operating leases had a weighted average remaining lease term of 14.8 years and 13.6 years, respectively. As of December 31, 2022 and 2023, the Group’s operating leases had a weighted average discount rate of 4.30% and 4.07%, respectively.

Operating lease costs were RMB3.2 billion, RMB3.5 billion and RMB3.5 billion (US$498 million) for the years ended December 31, 2021, 2022 and 2023, respectively, which excluded short-term lease costs. Short-term lease costs were RMB475 million, RMB424 million and RMB547 million (US$77 million) for the years ended

December 31, 2021, 2022 and 2023, respectively. Variable lease cost was immaterial for the years ended December 31, 2021, 2022 and 2023. For the years ended December 31, 2021, 2022 and 2023, no lease costs for operating or finance leases were capitalized.

Supplemental cash flow information related to operating leases was as follows:


	For the years ended December 31,
	2022		2023		2023
	RMB		RMB		US$
	(In millions)
Cash payments for operating leases		3,014		3,463		488
ROU assets obtained in exchange for operating lease liabilities		2,559		3,938		555

Future lease payments under operating leases as of December 31, 2023 were as follows:


	Operating leases
	RMB		US$
	(In millions)
Year ending December 31,
2024		3,182		448
2025		2,298		324
2026		1,664		234
2027		1,032		145
2028		291		41
Thereafter		324		46

Total future lease payments		8,791		1,238
Less: Imputed interest		643		90

Total lease liability balance		8,148		1,148

As of December 31, 2023, additional operating leases that have not yet commenced were immaterial.